It’s not whether you’re right or wrong, but how much money you make when you’re right and how much you lose when you’re wrong.” —George Soros
Our philosophy starts with protection.
Smart Chart Investor began with the counter-intuitive goal of attempting to simply limit losses, as opposed to chasing returns. We provide easy to follow, easy to understand trade alerts to help individual investors protect profits and limit losses. Buying and holding through 57% losses (as in 2008) is not your only option!
Protection Against Bear Markets
Diversification is an insufficient means of protection. Smart Chart Investor employs a proven long-term sell strategy to avoid the majority of bear markets and severe market corrections.
How different would your retirement account look today if you had exited the market in June of 2008, as our sell alert recommended?
We help you limit your exposure to bear market losses by utilizing proven technical indicators to identify significant trend changes.
Protection from Individual Equity Losses
Smart Chart Investor also offers protection from individual equity losses. When you buy a stock or index, what is your plan if that purchase drops by 30%? Most people don’t have one. We create a framework around price that allows us to limit our risk exposure, and know exactly when we will exit the trade if our purchase proves incorrect. Our risk is limited, our profit potential is not.
This is not a stop-loss. It is a stop-loss on steroids.
We do not set an arbitrary stop-loss number, or even a “trailing stop.” Instead, our framework is set around critical price areas that have proven to act as support, and we react to price movements around these known levels of support. The result is a lower average loss, and a more accurate gauge of whether or not we should sell, than we could get from an arbitrary number.
Because we choose our entry points carefully based on this framework, more often than not we have no drawdown whatsoever. That being said, if you choose not to utilize our service, I would highly recommend at least implementing a stop loss because losing 50% or more on a purchase should not be an option. Going into any trade without a plan for if you were wrong in your purchase should not be an option.